The Contestability of a Market

Market competitiveness A competitive market is a market where an inefficient company or a company that produces a profit can be expelled from a more efficient or less profitable competitor. Even if monopoly, which seems to occupy a dominant position in the market, dominates and new entrants exist only as potential competition, the market may be controversial. The threat posed by new entrants to the market is considered the main reason for their behavior in the market.

Market Competitiveness Because of the market's competitiveness, foreign companies need to compete on the same terms as existing companies. To ensure fair competition conditions - There are no hidden costs or barriers - the government must remove all behavioral (company) barriers, practices and market access (entry and exit) and operational barriers Hmm. Only by releasing the state competitive relations between companies and workers - domestic and foreign players competing under fair and equal conditions - eliminate market inefficiency, the labor market becomes more flexible, The factor market becomes more sensitive and the product market is more innovative. Market competitiveness hopes to increase profitability by strengthening incentives and pressure on market selection (Sauvé 1996). Through constantly uninterrupted competition, market competitiveness will promote and promote economic discipline and innovation. revolution

Employers oppose employers, businesses oppose companies, and oppose the state. Because capital flows depend on market competitiveness and market competitiveness, this is a function of national rationalization, and this new form of competition creates a large distribution profit in labor capital. In addition to logic, mandatory competition has clear features. The dynamic spiral of rationalization, competitiveness and liquidity creates a controversial relationship between capital, workers, businesses, regions, and countries, to guide the competitive point and to lead beyond domestic institutions - Framework of policy. Taking this into consideration, the competitiveness of the country depends on its characteristics as a place of economic activity, especially on the outline and institutional donation of that policy. This promotion of geographical advantage in other countries can lead to a sort of convergence effect and conspiracy

Although it is intellectual temptation, the theory of competition has nothing to do with the world of business that plunges and falls. There is no competitive market at all. Entry into the market was never cheap or easy. To offset the network effect of more experienced products, the awareness and competence of competitors' brands, and the tendency to conspire pricing, it costs a lot of money.